Seychelle Reports Marked Improvement in Both Revenues and Earnings
for 3rd Quarter Ended November 30, 2012 Versus Prior Year

January 15, 2013 09:07 AM Eastern Standard Time

SAN JUAN CAPISTRANO, Calif.--(BUSINESS WIRE)--Seychelle
Water Filtration Products, a DBA of Seychelle Environmental
Technologies, Inc. (OTCQB: SYEV), a worldwide leader in the development,
assembly and sale of proprietary portable water filtration bottles, made
several announcements today. For the third quarter ended November 30,
2012 Revenue was $1,161,785 compared to $825,316 in the prior year, up
$338,469 (+41.1%). The Net Income after taxes of $167,096 was an
increase of $76,581 up (+84.6%) compared to the prior year’s net Income
after taxes of $90,515.

Dick
Parsons, Chief Executive Officer, stated that, “The return to a Net
Income of 14% of revenues represents an improvement from lower results
in both the prior fiscal year period ended February 29, 2012 and in the
first quarter of fiscal year period ended May 31, 2012. This improvement
was due primarily to selling higher gross profit products by both the
two largest customers (51% of revenue) and five customers that accounted
for 30% of the sales thereby expanding our customer base, including 7%
of the sales generated from the Seychelle website. This revenue included
the new radiological filter that removes up to 99% of major nuclear
contaminants in drinking water and the pH filter which enhances the pH
level of source water filtered through our products. Bottles, pitchers
and replacement filters contributed 77% of the product sales for the 3
month period.”

The Company reported that sales revenue for the first nine months of the
fiscal year ended November 30, 2012 was $2,779,604 compared to
$4,112,801 in the prior year, down $1,333,197 (-32.4%). Net Income after
income taxes was $73,391 (3% of revenues) for the same period and was
down $354,739 (-82.8%) versus prior year net income of $428,130.

Mr. Parsons said that, “As noted in the prior press release for the
second quarter, we plan to continue to focus on the main factors
affecting our bottom line to improve the Company’s profitability in the
upcoming earnings periods. With our new production space in an adjacent
building, this has allowed for the inventory build-up and ultimately
more production space. Another area we are continuing to consider in
reducing the cost of goods and improving gross margins is the
out-sourcing of some of our faster moving products to a high volume
assembler/fulfillment vendor. Both the new production space and the
out-sourcing should have a direct effect on the bottom line and make the
move to a more scalable higher volume business model feasible.”

Finally, Mr. Parsons noted that, “We have two new products ready for the
market: a 20 oz sports bottle and a flat in-filter for hydration
backpacks that can also be used as a portable straw filter system. We
anticipate that these products will have a positive impact on both sales
and net income going forward.”

Carl
Palmer, Founder, President and Chairman, added that, “We also have
agreements for expanded radiological and pH programs in the US, Canada,
Japan, Israel, and one for Saudi Arabia. Shipments of our new
radiological filter to Japan were delayed due to administrative matters
with one government agency, but we expect them to be resolved shortly,
and containers to be shipped in the second quarter of FY 2014. Finally,
we concluded a Distribution Agreement with a well established business
group in Mexico that has plans for distribution into big box stores. We
believe that sales could meaningfully improve in the fourth quarter and
into fiscal 2014 as a direct result of these Distribution Agreements.”

With Seychelle portable water filtration, consumers can drink, with
complete confidence, perfectly filtered water that is great-tasting from
a variety of sources – the tap, rivers, streams, ponds or creeks. The
standard filter works for water from the tap while the advanced filter
is needed for most outdoor uses. The proprietary Seychelle Ionic
Adsorption Micron Filtration (IAMF) has been tested extensively by
Independent Government Laboratories in the US and throughout the world
to strict EPA/ANSI protocols and NSF Standards 42 and 53 by Broward
Testing Laboratories.

“Perfectly Filtered Water For a Great Taste and a Healthier Life”

Note to Investors

This press release may contain certain forward-looking information about
the Seychelles’s business prospects/projections. These are based upon
good-faith current expectations of Seychelles’s management. Seychelle
makes no representation or warranty as to the attainability of such
assumptions/projections. Investors are expected to conduct their own
investigation with regard to Seychelle. Seychelle assumes no obligation
to update the information in this press release. For more information,
please visit www.seychelle.com
or call (949) 234-1999.